TIAA-CREF and TIAA Henderson Real Estate Announce the Successful Closing of North America Multi-Family Housing Fund
Targeted News Service |
TTIAA-CREF and
CASA VI, the latest fund to close in the established CASA series of funds, is focused primarily on U.S. workforce housing and seeks to provide its investors enhanced returns with high sustainable income. The portfolio team for the CASA funds has a track record exceeding 20 years and manages
"This is apartment investing with a difference," said
Since its initial close, the CASA VI portfolio has acquired two properties, each financed through municipal bonds that are exempt from federal, and in some instances, state income tax in exchange for providing affordable workforce housing to communities. Tax-exempt bonds are issued for the development or rehabilitation of market rate housing. This debt strategy provides below market leverage for the fund, which supports enhanced income returns for the investors.
The two properties acquired for the CASA VI portfolio to date are:
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Since inception in
Tax-Exempt Bond Financing
Tax-exempt bond financing for apartments arose out of the desire of municipalities to foster home building targeted at middle-income residents. The local government issues tax-exempt bonds in order to provide below-market financing for such developments. In return, housing developers agree to set aside a certain percentage of units for renters with incomes below a ceiling that is based on the median income for that area.
These developments typically share the same physical characteristics and amenities as other core apartment properties and are often indistinguishable from neighboring multifamily housing communities. When a developer sells the property, the bonds and the unit set-asides remain with the asset.
About
Launched in
Together, the
About the CASA Team
The CASA team was part of
[Category: Financial Services]
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